News & Insights Latest Automotive Trends and Industry Updates

It enables systematic results in cybersecurity, functional safety, and process conformance. In addition, the startup strengthens automotive cybersecurity with features such as real-time intrusion detection and automated containment protocols. It is also integrated into fleet management dashboards and security operations centers (SOC). By securing these systems, cybersecurity prevents hijacking of steering or braking functions, protects sensitive driver data, and shields automakers from costly recalls and reputational harm.

Autonomous vehicles are reshaping mobility, from AI‑powered perception to intelligent infrastructure and generative simulation.
This report explores the top 10 electric vehicle trends shaping the industry in 2026.
Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021.
Hungarian startup V2ROADS offers a range of products and services tailored to the V2X ecosystem.
Apart from this, reduced access to EV charging points remains a significant challenge, according to consumer trends in the automotive industry.
Quantum computing accelerates material discovery and crash simulation, and edge computing and 5G offer real-time responsiveness in vehicles.
The integration of renewable energy into automotive production took centre stage in 2024.
Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials.

AI to Impact All of the Automotive Trends

Explore the most important trade fairs and conferences to boost your business success. Contact Avenga today to learn more about what industry experts have to say about these trends. For instance, China has introduced policies encouraging automakers to procure up to 25% of their chips domestically by 2025, reducing reliance on foreign suppliers. There will be continued demand for legacy process technology, with the construction and facilitation of the ESMC fab in Dresden progressing through 2025. Whether this central compute is a monolithic chip such as Nvidia Thor, which will be detailed in 2025, it will also be constructed from chiplets.

Other Technology Trends in Automotive Industry

Dealerships can take advantage of different video formats, like how-to videos, car highlights, and customer testimonials. For this in-depth research on the Top Automotive Trends & Startups, we analyzed a sample of 6000+ global startups & scaleups. Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes. This both lowers costs and improves vehicle performance, addressing both market demands and sustainability goals. Connectivity is one of the key trends in automotive industry, and 5G is what takes it to a more advanced level. 5G facilitates faster data transmission, higher network and bandwidth capacity as well as improves security (e.g., protection from cyberattacks).

What are Automotive Industry Trends?

The move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation. The road to 2025 is set to bring even more dynamic changes, with global collaborations, technological breakthroughs, and bold strategies defining the future of manufacturing. This article profiles the top five Chinese automotive original equipment manufacturers (OEMs) leading the industry in sales volume and market capitalization.

Chip Shortage Continues to Plague Auto Manufacturers

As the technology evolves and becomes more affordable for the industry, it opens more and more opportunities every year. AI, additive manufacturing, the Internet of Things, and 5G have become sources of product innovation and manufacturing efficiency, which in turn has led to revolutionary changes in customer experience. Finally, automotive manufacturers are increasingly adopting PMO software to standardize the execution of complex projects with globally distributed teams and ensure compliance with industry standards.

This innovative, circular production approach supports sustainability goals by reducing landfill waste and advancing circular economy practices in automotive manufacturing.
Self-driving vehicles are becoming increasingly common and will continue to do so in 2025.
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One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure.
Qumasoft’s solution enables companies to develop, produce, and operate cybersecure vehicles and components efficiently.
Many enterprises are moving ahead to create autonomous vehicles with all the multi-faceted benefits.

Explore the Top 10 Automotive Industry Trends in 2024

Searches for “autonomous driving” have increased by over 1,029% over the past 10 years. However, it is estimated that over 60% of all Americans have North Forty News car buying tips garages that will allow for electric vehicle charging. Because of this growth, it’s estimated that there are more than 40 million electric cars on the road. If you want to learn more about 10 of the most important auto industry trends for the next months, read on. The specialty equipment industry recognizes the potential in off-road products and accessories, mainly for pickups and SUVs such as the Jeep Wrangler.

🛣️ Trend 3: The Autonomous Horizon – Self-Driving Cars on the Near Road

The study offers data-based insights and recommendations for action for decision-makers in the automotive sector. Gain in-depth insights into the key developments that characterise the automotive industry. The big data market in automotive is growing, with a projected market size of USD 5.92 billion in 2024, expanding at a CAGR of 16.78% to reach USD 12.86 billion by 2029. Startups are developing big data solutions to help manufacturers and related industries streamline operations and maximize profits. The Automotive Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process.

EVIE Autonomous produces Autonomous Shuttles

Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes. The startup’s vehicle management system provides insights into speed, running vitals, and health information. Drivers benefit from Voicera ID, a voice-based virtual assistant that helps them keep track of the information they need. Additionally, the onboard speed recorder limits the speed to discourage dangerous driving behaviors. Singapore-based startup Beam focuses on e-scooters to promote shared mobility in the Asia-Pacific region. Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability.

China remains dominant but new players are also making noise on the EV scene

The evolution of self-driving and connected cars is simplifying driver-vehicle interaction. Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions. Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents. These innovations collectively propel the industry towards safer, more efficient transportation. Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.

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In some cases, car dealerships are charging huge markups on the inventory they do have. Even six months into 2022, vehicle manufacturers haven’t been able to correct the issue of low inventory. Reports from 2022 showed vehicle inventory was stagnant, sitting between 1 million and 1.1 million vehicles, for the first six months of the year. Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021.

What are the Top 10 Trends & Innovations in Automotive ( ?

The convergence of AI-driven production systems, the scaling of EV capabilities, and the adoption of sustainable practices will reshape the competitive landscape. Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility. Artificial Intelligence and Smart Factory technologies are no longer aspirational but integral to modern automotive manufacturing. Stellantis, for instance, has demonstrated how AI can transform production efficiency. By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines.

b. Regulatory and Legal Challenges

They improve energy efficiency through wide-bandgap devices that extend EV range and minimize charging times. The semiconductors also enable infotainment, voice assistants, and AI-driven interfaces for a better user experience. Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry. These advanced technologies are widely used across a great number of industries and the automotive domain is no exception. They are used by the automotive industry for car manufacturing, employee training as well as vehicle sales and marketing. However, although the Chinese EV market may take some time to adapt to the new subsidy-free scenario, the situation is optimistic.

Top car brands and dealerships are embracing VR as part of their dealership photography strategies to improve the customer experience.
AI algorithms process vast data from sensors and cameras, enhancing decision-making for safe, efficient driving.
The integration of 5G networks is accelerating advancements in vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communication, supporting autonomous driving functionalities.
These material innovations are also crucial to meeting evolving regulations, particularly the EU’s stringent emission standards.
EVs typically use 2-3 times more semiconductor content than internal combustion engine models, and in powertrain-specific components, that multiplier is possibly higher.
Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels.
OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles.
German startup Qumasoft offers a software-driven cybersecurity management solution for vehicles and components.

This increases the regulatory push toward connected and safety-enhanced vehicles. General Intelligence strengthens the evolution of software-defined vehicles by aligning human-inspired learning with safety. It also advances autonomous driving by enabling adaptability across vehicle types and conditions. In addition, the unit supports multiple communication protocols, including CAN and FlexRay. It also works with Ethernet and LIN, enabling integration across passenger cars, buses, trucks, and autonomous vehicles. AI and ML solutions process multimodal sensor data to power autonomy, predictive maintenance, and personalization.

For the eighth time, we asked managers and decision-makers in the automotive industry which trends and developments they are currently focusing on. The automotive industry report of the Future Readiness Monitor 2025 provides differentiated insights into strategies, challenges and fields of action in the industry. The trends in automobile industry and startups outlined in this report only scratch the surface of automotive innovations that we identified during our in-depth research. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.

For instance, AI-driven intrusion detection systems adapt to new attack patterns and block breaches before they spread. It uses AI-powered damage recognition, estimation, and work distribution to streamline repair processes. Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers. Further, through its smart management app, it enables users to schedule charging, monitor consumption, and manage fleets from one platform. UK-based startup Electric Car Converts changes classic Land Rovers into EVs by replacing combustion engines with modern electric motors and battery packs.

However, with the cessation of certain models, there are concerns about a potential production dip in 2024.
XCognition captures operator input or sensor data to generate execution-ready robotic programs to increase accuracy and reduce deployment time.
MaaS is set to become a key focus for the automotive industry in 2025 as companies look to diversify their business models and create new revenue streams.
Motoreto strengthens supply chain resilience in the auto industry and drives nearshoring by aligning distribution, procurement, and sales with regional market needs.
This makes sense, as 83% of car customers already said they wish they could save time by shopping online.
That’s no longer a distant future — it’s happening now, and it’s transforming everything from manufacturing floors to your driveway.
After the pandemic, we developed a habit of shifting all requirements to online methods, and so do goes with the automobile industry.
While there are a lot of opportunities ahead for the industry, there will be plenty of challenges like cost pressures, growing competition, and globalization.

US-based startup MotionSafe provides AI-powered cybersecurity solutions that protect connected vehicles from data breaches and cyber threats. Vehicle cybersecurity drives one of the fastest-growing areas in the auto industry as connected vehicles multiply and cyber risks intensify. Analysts project the automotive cybersecurity market to increase from USD 5.24 billion in 2025 to approximately USD 18.88 billion by 2034, advancing at a CAGR of 15.3%. Geopolitical risks, regulatory frameworks, cost advantages, and compliance needs drive the auto industry toward supply chain resilience and nearshoring.